As an installer/designer of photovoltaic solar panels systems, I have to show return on investment to my clients. Now that the State has allowed a tax credit for the installation of photovoltaic’s and other renewable energy appliances. A commercial business building owner can get their ROI within 5 years and receive a nontaxed profit for at least 25 years.
Example:
10KW Photovoltaic system upfront cost is 80,000. State tax credit is 28,000, Federal tax credit is 24,000, 5yr accelerated depreciation first yr is 16,000, energy produced is 3100. 28,000 + 24,000 + 16,000 + 3100 = 71100 first year. Second year is 16,000 plus 3,100 makes the ROI investment just under 2 years. This example is based on being able to take the full tax credit in 2 years. Most companies will be able to do this, but for some it will take the full 5 years. After the ROI, a non-taxed profit of 3,100 for 25 years or a profit of 98,000 is possible.
Please share this with every business owner you know.
